Apple shares reach a new high as Samsung’s Galaxy Note 7 gets discontinued

Apple shares have been sent soaring to new heights after Samsung made the final decision to permanently end production of its Galaxy Note 7.

Here’s the food chain at work; as Samsung has moved to officially discontinue its Galaxy Note 7 handset amidst fears that even replacement devices can explode, Apple shares have reached a new height.

In the past twenty-four hours, Samsung has both halted all sales and production of the Galaxy Note 7, and has instructed consumers to power down their devices. With the Note 7 brand name gone, investors have wiped a figure of $18.8 billion off Samsung’s market value – that’s the biggest daily percentage drop since 2008.

Conversely, Apple’s stock closed up 1.9% on Monday, at $116.05 per share – that’s the highest value reported this year, leaving the Cupertino giant trading at levels not seen since December 2016 as MacRumors reports.

Speaking on Apple’s stock, Michelle McGrade, chief investment officer at TD Direct Investing, stated that “The Apple share price was doing nothing for over a year ““ it was considered ex-growth ““ now it’s possibly the only game in town when it comes to buying a mobile phone.”

Further, the Galaxy Note 7’s demise could leave Google in a stronger position, as the Mountain View conglomerate recently introduced its own Pixel and Pixel XL smartphones. Speaking in conversation with the BBC, Ben Jararin, Creative Strategies Analyst, stated that “Now with this issue around Samsung and some questions and stigma around the brand, the product itself, could certainly help Google out. But I think Apple’s definitely the biggest beneficiary from here. If there were people on the fence about whether or not to get an iPhone 7 Plus, for example, which is kind of in the same size range as the Note 7, that was one of the things that we think is benefitting Apple the most, just because that’s a competitive product and it’s an established brand.”

The effect of Samsung discontinuing the Galaxy Note 7 will likely be felt for months – if not years – to come. Reports have cited that the brand will attempt to reposition the Galaxy Note 5 as the flagship Note, while the firm hopes that S7 and S7 Edge sales will cut some of its losses.